Scot and Libsey James are planning to open their second European Wax Center location in… more

ALAN HOWELL | MBJ

A year after opening their first European Wax Center location in Memphis, Libsey and Scot James are preparing to open their second Memphis location, along with planned locations in Nashville, Chattanooga and Knoxville.

After a career spent moving to several different cities through his telecom job, Scot James discovered European Wax Center during a business trip in Phoenix. The Aventura, Fla.-based company specializes in cosmetic waxing for men and women, and has 85 locations around the U.S.

Scot and Libsey James are planning to open their second European Wax Center location in… more

ALAN HOWELL | MBJ

The company has a special proprietary wax blend from France, and the application process is designed to take the pain out of the treatment.

Scot James “peeked around” the Phoenix franchise and thought it would be a good business to get into. However, Libsey James, having just experienced a painful wax herself, was a little more skeptical. She told her husband to go through his own wax treatment and if it wasn’t painful, she would do it. He agreed, getting his nose and ears waxed.

“I could breathe a lot better,” Scot James says. “We worked through five business plans and this won out.”

The Jameses, who have the rights to develop or sell franchises all over the Mid-South, sold a franchise in Nashville that opened last April. Franchises cost $45,000 plus development and build-out costs. The second Memphis location, located at Trinity and North Germantown Parkway, is expected to open this spring. The Jameses also sold a franchise in Murfreesboro that opened in January. They collect ongoing royalty fees at the franchises they sell.

Since the original Memphis location opened, it has served 15,000 customers, with revenue of just under $500,000 in 2012. It is expected to grow to $750,000 this year. Scot James estimates 20 percent of European Wax Center locations garner more than $1 million in revenue per year, and he projects the Memphis store will hit that goal by 2014. The Poplar location has 14 employees and the Germantown Parkway store will open with nine employees.

Libsey James says the location of the original store has been a major part of its early growth, so finding a strong second location was just as important. The Jameses worked with The Shopping Center Group to find both locations.

Gary Shanks, a broker with The Shopping Center Group, says they needed a location that created immediate brand awareness among a customer base that also shops in the Laurelwood area. And Shanks had to become acquainted with the business himself.

“Honestly, I had to lean on my wife initially to help me better understand their business,” Shanks says. “Once I got my arms around that, the rest was easy. Libsey and Scot have done an excellent job in marketing the brand and creating awareness of their concept in a very short period of time.”

In addition to eliminating the pain involved with waxing, European Wax Center also specializes in quick service for customers at a lower cost. Libsey James says other waxing services may charge $100 for Brazilian waxes and customers often have to wait for an hour or more. European Wax Center charges $42 for the same service.

“You’re in and out in 15 minutes, so you can have three or four other services done if you need to,” Libsey James says.

Because of the quick service, European Wax Center doesn’t offer “pampered” services one may get in a spa setting. However, to acquaint customers with what the company has to offer, the first wax is free and customers who refer four other customers receive a free eyebrow wax.

After opening the second Memphis location, the Jameses will focus on building out more locations in Nashville, Knoxville and Chattanooga, while also exploring potential locations in Jackson, Tenn., and a third Memphis location.

While their growth plans are ambitious, they’re also cautious about oversaturating a market.

“It still shocks the corporate office that Memphis is doing so well,” Scot James says. “We know the model works and we know there will be six stores in the state of Tennessee and they’ll all be successful.”